Duta enclave: Semantan sues to force sale of 263 acres

The High Court has given the federal government until 4 January 2027 to file its defence in a new suit by Semantan Estate (1952) Sdn Bhd over the 263.272-acre Duta enclave in Kuala Lumpur. The company wants the court to make the government sell the land and hand it the proceeds. Its statement of claim puts the land's present market value at RM12b to RM13b. That is the company's own estimate, not a sale price or a court finding.

At case management on 3 November, Judge Datuk Anand Ponnudurai also gave Semantan Estate until 12 February to reply and fixed 16 February for the next case management.

What the new suit asks for

Semantan Estate, which is in members' voluntary liquidation, filed the suit with its liquidator, Dr Lai Chee Chuen, on 8 October. It names the government and six others: the Federal Lands Commissioner, two ministers, the Director-General of Lands and Mines, the Federal Territories Director of Lands and Mines, and the Federal Territories Registrar of Titles.

• First choice: a declaration that the government holds the land in trust for the company, and an order to sell it within a period set by the court. The Federal Lands Commissioner, as registered owner, would sign the sale papers, and the company would take the proceeds after deducting what it is paid in the other cases.
• Second choice: equitable compensation for breach of trust, or damages under Article 13 of the Federal Constitution, which protects property rights.
• Also: payment for the benefit the government has had from using the land, plus 5% interest a year.

The land

The enclave runs along Jalan Tuanku Abdul Halim, formerly Jalan Duta, in Mukim Batu. According to the company, the government took it in 1956–58 under the Land Acquisition Enactment 1923 for a "Diplomatic Enclave". It later split 230.851 acres into 38 lots registered to the Federal Lands Commissioner, and the other 32.421 acres became roads and other infrastructure.

The company says the land was never used as a diplomatic enclave. Today it holds the National Archives, the Kuala Lumpur Syariah Court, the National Hockey Stadium, the Inland Revenue Board, the MACC Academy and the Malaysian Institute of Integrity.

Spread over the whole 263 acres, RM12b to RM13b works out to about RM1,050 to RM1,130 psf.

Enlarge

How it got here

• 2003: Semantan Estate sued, saying the land was taken illegally.
• 2009: the High Court agreed. It ruled the acquisition void and held that the company kept a beneficial interest.
• August 2024: the High Court ordered the titles to be transferred to the company.
• 24 June 2025: the Court of Appeal overturned that order. It ruled that the law does not allow an order to recover land from the government, and that compensation should be set at the land's value in December 1956, when the government took possession.
• 13 November 2025: the Federal Court refused the company leave to appeal.

The company says the new suit is different: it no longer asks for the titles, but for the value of the beneficial interest it says it still holds.

Two other claims still open

• Compensation at the 1956 value is being assessed by Judge Roslan Mat Noor. On 14 August the government made a settlement offer, which needs Finance Ministry approval. Its terms were not disclosed.
• Loss of use (mesne profits) from 1956 to 2021: Semantan Estate claims RM3.1b to RM13.1b, based on a private valuation. The government puts it at RM290m, based on the Valuation and Property Services Department (JPPH). A decision is pending.

Cover photo: The Edge Malaysia, via EdgeProp.